Solscan tagged the FTX Cold Storage #2 address to unstake 1.6 million SOL

October 31, 2023

According to a recent report by Nansen, a blockchain analytics firm, Solscan has tagged the FTX Cold Storage #2 address to unstake 1.6 million SOL (Solana tokens) on October 30. These tokens are currently valued at approximately $58.76 million. However, despite this tagging, the funds remain in the staking account as of now.

The FTX Cold Storage #2 address is a significant holder of digital assets, with over $100 million in various cryptocurrencies. This includes 1,033 WBTC (Wrapped Bitcoin), 364,859 JSOL (Wrapped Solana on the Jumpnet network), 141,870 mSOL (Marinade Staked SOL), 2,440 ETH (Ethereum), and 3,990,440 USDT (Tether), among others.

Unstaking could contribute in settling FTX liabilities

The decision to unstake such a significant amount of SOL tokens could have various implications for the holder and the Solana network at large. Unstaking typically indicates an intention to move or sell the tokens, which could impact the token’s price in the market. Considering that FTX investors are in dire need of funds, unstaking these could go a long way in settling the liabilities of the exchange.

However, it’s important to note that unstaking actions do not always lead to selling. The holder might be planning to use the tokens for other purposes within the Solana ecosystem, such as participating in DeFi protocols or voting in governance proposals.

Why FTX has not unstaked

The fact that these tokens remain in the staking account despite being tagged for unstaking could be due to various reasons. It could be a strategic decision by the exchange, or it could be due to technical factors related to the Solana network’s unstaking process.

In conclusion, this development highlights the dynamic nature of the cryptocurrency market and the strategic decisions made by large holders. It also underscores the importance of blockchain analytics in providing insights into these activities. As we move forward, it will be interesting to see how this situation evolves and what impact it will have on the Solana network and its token holders.